Japanese semiconductor chip giant Elpida filed for bankruptcy protection with the Tokyo District Court. It will enter the reorganization process under the "Company Rehabilitation Act." The Tokyo District Court has accepted the case. As of the end of March last year, Elpida’s total liabilities amounted to 448 billion yen (approximately US$5.5 billion), which made it the largest bankruptcy case in Japan’s manufacturing history. Yukio Chino, the Japanese economic and industrial sector, said that he hopes to minimize its impact on Japan’s domestic economy and employment. In fact, after Elpida entered the bankruptcy protection procedure, 28 billion yen of the 30 billion yen injected by the Japanese government through the policy investment bank could not be repaid, and the Tokyo Stock Exchange immediately announced that Elpida’s stock will be held in March. Delisting on the 28th.
Elpida was established in 1999 after integrating NEC and Hitachi's computer memory business. In 2003, it also annexed Mitsubishi Electric's related business. It is currently the only company in Japan that manufactures computer memory. The output ranks third in the world. The immediate cause of Elpida’s bankruptcy was the inability to repay the 77 billion yen debt due on April 1. Statistics show that by the end of January this year, Elpida’s funds in the hands were only 50 billion yen to 60 billion yen, and Elpida’s efforts to cooperate with relevant overseas companies were also a fight.
Elpida has never been able to get out of the loss situation, and the business restructuring has repeatedly failed. This is not the first time for Elbida. During the international financial crisis, Elpida’s performance deteriorated rapidly. In 2008, a deficit of 178.8 billion yen occurred, and the Japanese government finally injected capital to escape the disaster. However, the company faced enormous pressure for repayment. In the first three quarters of fiscal 2011, the company’s net loss had reached 98.9 billion yen.
From the second half of last year, Elpida company tried to cooperate with a number of companies, but in the end it all failed. Banks began to lose patience. Japanese policy investment banks also asked Elpida to “completely carry out structural reforms. Otherwise, financing support will cease after March of this year.†Elpida has no choice but to apply for bankruptcy protection.
The semiconductor industry is known as "industry rice." Japan’s semiconductor industry once led the world and was a proud industry for Japanese. It once occupied 70% of the world’s market share, and it has now fallen to 15%, surpassed by Korean Samsung’s electronics company. Erbida’s president Sakamoto believes that the biggest problem is Japan’s backwardness in R&D and the continued appreciation of the yen, while the devaluation of the Korean won has made South Korea’s semiconductor industry a strong competitive force. Although Elpida’s profit margins have improved significantly compared to previous years, the appreciation of the yen in more than a year has eroded this advantage.
Japan attaches great importance to products that do not make people pick the wrong thing. Therefore, Japan's memory is developed with the goal of carrying switches for large computers and large communication companies. The durability of the products is extremely high, and Samsung Electronics and Micron Technology Inc. It emphasizes quality while paying more attention to cost. The starting point of the two is different, and eventually Elpida's price competitiveness has become the embarrassment of its own development. After the integration of the domestic semiconductor industry in Japan, Erbi will be the only memory manufacturing company in the country and a “quasi-national team†company that the Japanese government will guarantee. Despite government funding and policy support, Elpida has repeatedly suffered setbacks in the global electronics industry's reshuffle and corporate operations have not improved. Therefore, public opinion believes that relying solely on the help of the country and policy support may enable the company to overcome difficulties, but the long-term survival and development of the company cannot rely solely on the government's escort. Some commentators pointed out that the fall of Elpida is also a microcosm of the serious situation faced by the Japanese electronics industry. In the restructuring of the global electronics industry, products that do not have absolute technological advantages or irreplaceable products are at risk of becoming passive and then failing. Some market players in Japan began to worry that whether Elpida’s previous vehicle will be repeated in Hitachi, Toshiba, or Sony, which has just recently integrated LCD panel business?
Elpida was established in 1999 after integrating NEC and Hitachi's computer memory business. In 2003, it also annexed Mitsubishi Electric's related business. It is currently the only company in Japan that manufactures computer memory. The output ranks third in the world. The immediate cause of Elpida’s bankruptcy was the inability to repay the 77 billion yen debt due on April 1. Statistics show that by the end of January this year, Elpida’s funds in the hands were only 50 billion yen to 60 billion yen, and Elpida’s efforts to cooperate with relevant overseas companies were also a fight.
Elpida has never been able to get out of the loss situation, and the business restructuring has repeatedly failed. This is not the first time for Elbida. During the international financial crisis, Elpida’s performance deteriorated rapidly. In 2008, a deficit of 178.8 billion yen occurred, and the Japanese government finally injected capital to escape the disaster. However, the company faced enormous pressure for repayment. In the first three quarters of fiscal 2011, the company’s net loss had reached 98.9 billion yen.
From the second half of last year, Elpida company tried to cooperate with a number of companies, but in the end it all failed. Banks began to lose patience. Japanese policy investment banks also asked Elpida to “completely carry out structural reforms. Otherwise, financing support will cease after March of this year.†Elpida has no choice but to apply for bankruptcy protection.
The semiconductor industry is known as "industry rice." Japan’s semiconductor industry once led the world and was a proud industry for Japanese. It once occupied 70% of the world’s market share, and it has now fallen to 15%, surpassed by Korean Samsung’s electronics company. Erbida’s president Sakamoto believes that the biggest problem is Japan’s backwardness in R&D and the continued appreciation of the yen, while the devaluation of the Korean won has made South Korea’s semiconductor industry a strong competitive force. Although Elpida’s profit margins have improved significantly compared to previous years, the appreciation of the yen in more than a year has eroded this advantage.
Japan attaches great importance to products that do not make people pick the wrong thing. Therefore, Japan's memory is developed with the goal of carrying switches for large computers and large communication companies. The durability of the products is extremely high, and Samsung Electronics and Micron Technology Inc. It emphasizes quality while paying more attention to cost. The starting point of the two is different, and eventually Elpida's price competitiveness has become the embarrassment of its own development. After the integration of the domestic semiconductor industry in Japan, Erbi will be the only memory manufacturing company in the country and a “quasi-national team†company that the Japanese government will guarantee. Despite government funding and policy support, Elpida has repeatedly suffered setbacks in the global electronics industry's reshuffle and corporate operations have not improved. Therefore, public opinion believes that relying solely on the help of the country and policy support may enable the company to overcome difficulties, but the long-term survival and development of the company cannot rely solely on the government's escort. Some commentators pointed out that the fall of Elpida is also a microcosm of the serious situation faced by the Japanese electronics industry. In the restructuring of the global electronics industry, products that do not have absolute technological advantages or irreplaceable products are at risk of becoming passive and then failing. Some market players in Japan began to worry that whether Elpida’s previous vehicle will be repeated in Hitachi, Toshiba, or Sony, which has just recently integrated LCD panel business?
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